For a Big Apple Bagels franchise in Virginia, who must successfully complete the sales/operations seminar and technical training seminar?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum is to a BAGELS Franchise Agreement dated , 20 between BAB Systems, Inc. and (Franchisee) to amend said Agreement as follows: 1. Paragraph 16.a.x. of the BAGELS Franchise Agreement on Termination for Failure to Complete Training is amended to read in its entirety as follows: Successful Completion of Training. The grant of the franchise herein is conditioned upon successful completion of the sales/operations seminar and technical training seminar by Franchisee (or Franchisee's individual owner if Franchisee is a corporation, partnership, or other entity.) If during the course of the training programs or within fifteen (15) days thereafter Franchisor concludes that Franchisee has not successfully completed the sales/operations seminar and technical training seminar, may, in its sole discretion and judgment, cancel this Agreement and all rights hereunder, where permitted by applicable law, by giving notice to Franchisee and tendering to Franchisee a refund of its initial franchise fee less an amount to cover the reasonable expenses incurred by Franchisor in connection with training Franchisee. Franchisee agrees that such refund shall be the full extent of Franchisor's liability and responsibility in the event of such cancellation, and Franchisee and its owners shall execute a general release, in a form satisfactory to Franchisor, of any and all claims against Franchisor and its affiliates, officers, directors, employees and agents. Upon cancellation of this Agreement, Franchisee shall return to Franchisor all materials, manuals, information and all other items that Franchisee received from Franchisor, including all copies thereof and notes thereon which Franchisee may have or control. Franchisee further agrees to maintain strictly the confidentiality of all information received relating to the BAB System and not to use in the operation of a food service or similar business, any trade secrets or confidential information obtained from Franchisor in the course of the training program or otherwise.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, specifically the addendum for the Commonwealth of Virginia, the grant of a franchise is conditional upon the successful completion of both the sales/operations seminar and the technical training seminar. This requirement applies to the franchisee. However, if the franchisee is a corporation, partnership, or other entity, then the individual owner of that entity must successfully complete the training programs.
This condition is critical because if the franchisor concludes that the franchisee (or the individual owner) has not successfully completed the required training programs, the franchisor has the right to cancel the franchise agreement. This decision is at the franchisor's sole discretion and judgment. The cancellation can occur during the training programs or within fifteen days after their completion.
In the event of cancellation, Big Apple Bagels will refund the initial franchise fee to the franchisee, but will deduct an amount to cover the reasonable expenses incurred by the franchisor in connection with training the franchisee. The franchisee agrees that this refund represents the full extent of the franchisor's liability and responsibility. Furthermore, the franchisee and its owners must execute a general release of all claims against the franchisor. The franchisee is also obligated to return all materials, manuals, and information received from the franchisor and maintain the confidentiality of the BAB System information.
This clause underscores the importance Big Apple Bagels places on proper training and adherence to its operational standards. It also protects the franchisor by limiting their liability and ensuring the return of confidential information if the franchisee does not meet the required training standards. Prospective franchisees in Virginia should be aware of these conditions and ensure they are prepared to fully engage in and successfully complete the training programs.